NYDFS Stablecoin Guidance is a New York Department of Financial Services industry letter formally titled Guidance on the Issuance of U.S. Dollar-Backed Stablecoins. DFS issued the guidance on June 8, 2022 for entities licensed under 23 NYCRR Part 200 or chartered as New York limited purpose trust companies that issue U.S. dollar-backed stablecoins under DFS supervision. As of June 5, 2026, DFS continues to list the guidance on its virtual currency business licensing page, and the listing does not mark the stablecoin guidance as superseded.
The guidance is not a statute and does not replace New York’s BitLicense regulation, New York Banking Law charter requirements, supervisory agreements, or federal law. It is best understood as a prudential and consumer-protection baseline for DFS-supervised stablecoin issuers. DFS states that the guidance focuses on three categories: redeemability, reserve assets, and attestations concerning those reserves. It applies only to U.S. dollar-backed stablecoins issued under DFS supervision by DFS-regulated virtual currency entities, not to every stablecoin listed or used by a New York-regulated firm.
Key provisions of the NYDFS Stablecoin Guidance
Prior DFS approval and scope
DFS connects stablecoin issuance to its broader virtual currency licensing and trust-company oversight. BitLicensees must obtain DFS written approval before introducing a materially new product, service, or activity, and DFS states that this prior-approval requirement applies to stablecoin issuance. New York limited purpose trust companies engaging in virtual currency business activity are subject to analogous approval expectations.
Backing and timely redemption
The guidance provides that a DFS-supervised U.S. dollar-backed stablecoin must be fully backed by reserve assets, with the market value of reserves at least equal to the nominal value of all outstanding stablecoin units at the end of each business day. Issuers must adopt DFS-approved redemption policies that give lawful holders the right to redeem at par, at a 1:1 U.S. dollar exchange rate net of ordinary, well-disclosed fees. The default “timely” redemption standard is no more than two full business days after receipt of a compliant redemption order.
Reserve asset controls
Reserve assets must be segregated from the issuer’s proprietary assets and held with approved custodians or U.S. state or federally chartered insured depository institutions for the benefit of stablecoin holders. Permitted reserve assets include short-dated U.S. Treasury bills, certain overnight reverse repurchase agreements, government money-market funds subject to DFS caps and restrictions, and deposit accounts at qualifying depository institutions subject to DFS-approved limits.
CPA attestations and public reporting
DFS requires at least monthly reserve attestations by an independent U.S.-licensed CPA applying AICPA attestation standards, with the CPA and engagement letter approved in advance by DFS. The issuer must make monthly attestation reports public and provide them to DFS within 30 days after the covered period. The guidance also requires an annual attestation report on the effectiveness of internal controls, structure, and procedures, with the report provided to DFS within 120 days after the covered period.
Jurisdictional impact in New York
The guidance sits inside New York’s virtual currency regime. DFS’s virtual currency licensing page states that many stablecoins are considered virtual currencies under 23 NYCRR Part 200, meaning their use may require licensure, self-certification, Greenlisting, or specific DFS approval for covered virtual currency business activity. DFS’s Greenlist page also states that U.S. dollar-backed stablecoins approved for issuance in New York are subject to this stablecoin guidance.
Status and federal stablecoin context
The guidance remains active DFS guidance as of this profile’s verification date, but it should be reviewed alongside the federal GENIUS Act. Public Law 119-27 created a federal payment-stablecoin framework in 2025, and its effective date is the earlier of 18 months after July 18, 2025 or 120 days after primary federal payment stablecoin regulators issue final implementing regulations. The GENIUS Act also requires federal and state payment-stablecoin regulators to promulgate implementing regulations within one year after enactment and coordinate as appropriate.